World
The Illicit Trade of Western Technology to Russia: A Deep Dive
Explore the shadowy world of the illicit trade of Western technology to Russia. This in-depth analysis uncovers the motivations, methods, and implications of this controversial exchange, revealing its impact on global security and innovation.
The Shadowy Trade of Western Technology to Russia
In a seemingly unremarkable office located on the seventh floor of 135 Bonham Strand, just a stone’s throw from Hong Kong’s bustling financial district, at least four companies operate under a veil of secrecy. Their mission: to facilitate the illicit trade of Western technology to Russia. These shell companies, registered at this address, have successfully acquired millions of dollars worth of restricted chips and advanced sensors intended for military technology firms in Russia—many of which are under strict sanctions imposed by the U.S. government.
Among these companies are names like Olax Finance and Rikkon Holding. The office itself, bearing a faded number 704 on the door, appears abandoned. During a visit last month, no one responded to knocks or inquiries, and an advertisement for air-conditioning was left hanging in the crack of the door.
The entrance to Rikkon Holding and Olax Finance at 135 Bonham Strand remains eerily silent, with no answers offered during a visit in June. Credit: Anthony Kwan for The New York Times
Despite their unassuming facade, these companies play a pivotal role in a complex network that connects U.S. research laboratories to Chinese manufacturing facilities, Russian arms manufacturers, and even the battlefields of Ukraine. They exemplify a troubling reality: the inability of the U.S. government and major technology firms to effectively control the trajectory of their technology.
Since the onset of Russia’s invasion of Ukraine in 2022, a staggering nearly $4 billion of restricted chips have made their way into Russia through over 6,000 companies, including those based at the obscure 135 Bonham Strand address. This information stems from a comprehensive analysis conducted by The New York Times, which scrutinized Russian customs data, corporate records, domain registrations, and sanctions data. The investigation covered nearly 800,000 shipments of restricted electronic goods entering Russia since mid-2021.